West Kensington residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with procure West Kensington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Liam owned a 2 bedroom flat in West Kensington on the market with a lease of a little over 59 years left. Liam on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Liam to invoke his statutory right. Liam obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Mr and Mrs. I Sánchez purchased a ground floor flat in West Kensington in September 2001. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative flats in West Kensington with 100 year plus lease were worth £275,000. The average ground rent payable was £45 billed annually. The lease ended on 21 January 2095. Given that there were 69 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
An example of a Lease Extension matter before the tribunal for a West Kensington flat is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case was in relation to 1 flat. The remaining number of years on the lease was 37.79 years.